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Key Points
- OCI secured $1.3 billion in cash and 9.9 million Methanex shares, becoming the company’s second-largest shareholder with a 12.9% stake after the deal closed.
- The sale included OCI’s 50% interest in Natgasoline, supporting plans to repay $600 million in bonds and return $1 billion to shareholders in 2025 and 2026.
- With methanol divested, OCI will focus on nitrogen fertilizers, renewable fuels, and industrial chemicals while pursuing further portfolio optimization and strategic growth.
OCI Global, a leading producer and distributor of nitrogen and methanol products helmed by Egyptian billionaire Nassef Sawiris, has finalized the sale of its global methanol business, OCI Methanol, to Methanex Corporation for $1.6 billion. The deal marks one of the sector’s largest recent transactions, further transforming OCI’s portfolio and balance sheet.
Ownership shifts, strategic reset underway
The transaction officially closed on June 27, 2025, after receiving all required regulatory and shareholder approvals. Methanex, listed in Toronto and New York, now holds full ownership of OCI Methanol, including the company’s interests in major US and European production assets. The sale was structured on a cash-free, debt-free basis and included OCI’s 50 percent interest in the Natgasoline joint venture in Texas.
Under the agreement, OCI received approximately $1.3 billion in cash and 9.9 million Methanex shares valued at $346 million, making OCI the second-largest Methanex shareholder with a 12.9 percent stake. The proceeds provide OCI with substantial flexibility to accelerate deleveraging, fund shareholder returns, and pursue new strategic investments.
Executive Chairman Nassef Sawiris emphasized the broader strategic significance of the divestment, saying, “The successful closing of this transaction, alongside the repayment of debt and our planned return of capital, reflects our commitment to delivering shareholder value. Including the upcoming $1 billion distribution, OCI will have returned over $7.4 billion to shareholders since 2021.”
OCI Methanol’s footprint and market position
Before the sale, OCI Methanol operated plants in Beaumont, Texas, and Delfzijl, Netherlands, with a combined capacity exceeding 3 million tonnes annually.
After closing, OCI confirmed plans to launch a tender offer for its $600 million 6.7 percent bonds due 2033 within five business days of the closing of the transaction, offering 110.75 percent of par plus accrued interest. The board also approved an initial $700 million shareholder distribution by September 5, 2025, with up to $300 million more planned for late 2025 or early 2026.
In Q1 2025, OCI showed resilience despite lower output. Own-produced methanol sales fell 34 percent year-on-year to 233,000 tonnes due to a planned Beaumont turnaround. Natgasoline operated at 95 percent utilization after restarting in late 2024. Higher benchmark US Gulf Coast methanol prices, averaging $370 per tonne, partially offset volume declines.
Next steps for OCI Global leadership under Sawiris
With Nassef Sawiris holding a 38.8 percent stake, OCI Global has grown into a world-class industrial heavyweight, operating across four continents with an annual production capacity of 17.2 million metric tonnes.
With the methanol business divested, OCI will sharpen its focus on nitrogen fertilizers, renewable fuels, and industrial chemicals. The company has signaled that further portfolio optimization may follow, while capital returns remain a priority.
